Onsemi to buy Synaptics in $7 billion all-stock deal
Chipmaker ON Semiconductor agreed to acquire touch- and display-technology firm Synaptics in an all-stock transaction valued at about $7 billion. The deal expands Onsemi's push into so-called physical AI — sensors and edge processors for devices, cars and robots. It ranks among the largest semiconductor mergers announced this year.
ON Semiconductor has agreed to buy Synaptics in an all-stock deal valued at roughly $7 billion, the companies said, marking one of the chip sector's biggest tie-ups of 2026. Synaptics makes touch, display and connectivity components used in consumer electronics, while Onsemi specialises in power and sensing chips for cars and industry.
Executives framed the purchase as a bet on "physical AI" — the spread of artificial intelligence into sensors, edge processors and connected devices. The combined company would offer a broader portfolio spanning automotive, industrial and consumer markets, areas where demand for low-power processing is rising.
The all-stock structure ties Synaptics shareholders' returns to the performance of the merged group. The transaction is subject to regulatory approval and a shareholder vote, and the firms said they expect it to close in the coming quarters. Analysts will watch for any antitrust scrutiny given the overlap in sensing and connectivity chips.
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